Which of the following correctly identifies all six fiduciary duties a California real estate agent owes to their principal, as represented by the acronym OLD CAR?
Correct Answer
B) Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable care
OLD CAR stands for Obedience (follow all lawful client instructions), Loyalty (place the client's interests above all others, including the agent's own), Disclosure (reveal all material facts that could affect the client's decisions), Confidentiality (protect information the client would not want disclosed to adverse parties), Accountability (properly receive, handle, and account for all funds and documents), and Reasonable care (apply the skill and competence expected of a licensed professional). These six duties derive from common law agency principles and are reinforced through California Civil Code §2079.16 and B&P Code §10176.
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A California seller signs an exclusive agency listing with Broker X. The seller personally finds a buyer and sells the property without any assistance from Broker X. Under this type of listing, does the seller owe Broker X a commission?
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A California listing agent conducts a visual inspection of a property and notices water stains on the ceiling but does not mention them in the TDS or to any prospective buyers. A buyer purchases the property and later discovers extensive water damage. Under California Civil Code §2079, what liability does the agent face?